Asian Markets Trade Mostly Higher

Asian stock markets are mostly higher on Tuesday, following the mixed cues from Wall Street overnight with both S&P 500 and Nasdaq Composite hitting all-time highs, as traders remain optimistic about an interest rate cut by the US Fed in December after remarks from Fed Governor Christopher Waller that he is ‘leaning toward’ a December rate cut. Asian markets closed mostly higher on Monday.

Traders are also cautious ahead of a slew of crucial US economic data later this week, including a closely watched monthly jobs report and a reading on consumer sentiment.

Concerns over a broader trade war capped regional gains after U.S. President-elect Donald Trump’s threat of 100% tariff on BRICS countries if they pursue new currency alternatives to the U.S. dollar. He has threatened a 100 percent tariff on the bloc of nine nations if they undercut the U.S. dollar.

“The idea that the BRICS Countries are trying to move away from the dollar while we stand by and watch is OVER,” Trump said in a post on his Truth Social network on Saturday.

Extending the slight gains in the previous session, the Australian stock market is trading significantly higher on Tuesday, following the mixed cues from Wall Street overnight. The benchmark S&P/ASX 200 is moving above the 8,500 level to all-time highs, with gains across most sectors led by iron ore miners and financial stocks.

The benchmark S&P/ASX 200 Index is gaining 58.30 points or 0.69 percent to 8,506.20, after touching an all-time high of 8,514.50 earlier. The broader All Ordinaries Index is up 58.80 points or 0.68 percent to 8,763.80. Australian stocks closed slightly higher on Monday.

Among the major miners, BHP Group and Rio Tinto are edging up 0.3 to 0.4 percent each, while Fortescue Metals is gaining more than 2 percent and Mineral Resources is advancing more than 3 percent.

Oil stocks are mixed. Origin Energy is losing almost 1 percent and Santos is edging down 0.2 percent, while Woodside Energy is gaining almost 1 percent and Beach energy is advancing almost 2 percent.

Among tech stocks, Afterpay owner Block is surging more than 5 percent, while Appen and Xero are gaining almost 2 percent each. Zip is losing more than 2 percent and WiseTech Global is slipping 1.5 percent.

Gold miners are mixed. Gold Road Resources is losing almost 2 percent, Newmont is edging down 0.1 percent and Northern Star resources is declining almost 3 percent, while Resolute Mining is adding more than 1 percent and Evolution Mining is gaining almost 1 percent.

Among the big four banks, Commonwealth Bank is edging up 0.5 percent, ANZ Banking is gaining more than 1 percent, Westpac is advancing more than 2 percent and National Australia Bank is adding more than 1 percent.

In economic news, Australia posted a seasonally adjusted current account deficit of A$14.149 billion in the third quarter of 2024, the Australian Bureau of Statistics said on Tuesday. That missed forecasts for a shortfall of A$10.3 billion following the downwardly revised A$16.351 billion deficit in the three months prior (originally -A$10.7 billion). The capital and financial account surplus was A$20.084 billion, an increase of A$2.658 million on the Q2 surplus.

The balance on goods and services in seasonally adjusted chain volume terms is expected to contribute 0.1 percentage points to the September quarter 2024 GDP quarterly movement. That missed expectations for 0.4 percent and was down from 0.2 percent in the previous quarter.

In the currency market, the Aussie dollar is trading at $0.646 on Tuesday.

The Japanese stock market is trading sharply higher on Tuesday, adding the gains in the previous session, with the Nikkei 225 moving above the 39,200 level, following the mixed cues from Wall Street overnight, with gains across all sectors led by index heavyweights and technology stocks.

The benchmark Nikkei 225 Index closed the morning session at 39,180.06, up 667.04 points or 1.73 percent, after touching a high of 39,215.85 earlier. Japanese shares ended significantly higher on Monday.

Market heavyweight SoftBank Group is gaining more than 3 percent and Uniqlo operator Fast Retailing is adding more than 1 percent. Among automakers, Honda is gaining more than 1 percent and Toyota is also adding more than 1 percent.

In the tech space, Advantest is gaining almost 3 percent, Screen Holdings is surging more than 7 percent and Tokyo Electron is adding almost 4 percent.

In the banking sector, Mitsubishi UFJ Financial is edging up 0.4 percent, Mizuho Financial is gaining almost 1 percent and Sumitomo Mitsui Financial is adding more than 1 percent.

The major exporters are mostly higher. Panasonic and Mitsubishi Electric are gaining more than 3 percent each, while Canon is adding more than 1 percent and Sony is edging up 0.3 percent.

Among the other major gainers, Disco is surging 6.5 percent, while Furukawa Electric and Kawasaki Kisen Kaisha are advancing almost 5 percent each. Fujikura is gaining more than 4 percent, while Nidec, Lasertec and Asahi Kasei are adding almost 4 percent each. Mitsubishi Electric and Nippon Yusen K.K. are advancing more than 3 percent each, while Sumitomo Heavy Industries and Nitto Denko are up almost 3 percent each.

Conversely, Kansai Electric Power iand Sumitomo Pharma are losing more than 3 percent each.

In the currency market, the U.S. dollar is trading in the higher 149 yen-range on Tuesday.

Elsewhere in Asia, Singapore, South Korea, Indonesia and Taiwan are higher by between 1.0 and 1.6 percent each, while Malaysia is edging up 0.1 percent. New Zealand, China and Hong Kong are lower by between 0.1 and 0.6 percent each.

On Wall Street, stocks closed on a mixed note on Monday. Technology stocks had a good session although the broad market remained somewhat sluggish as investors looked ahead to upcoming economic data, including private and non-farm payroll reports, JOLTs, and readings on manufacturing activity, due during the course of this week.

Among the major averages, the Dow ended down 128.65 points or 0.29 percent at 44,782.00, while the S&P 500 and the Nasdaq, both closed at record highs at 6,047.15 and 19,403.95, respectively. While the S&P 500 gained 14.77 points or 0.24 percent, the Nasdaq climbed 185.78 points or 0.97 percent.

Meanwhile, the major European markets moved to the upside on the day. The U.K.’s FTSE 100 gained 0.31 percent, Germany’s DAX jumped 1.57 percent and France’s CAC 40 edged up 0.02 percent.

Crude oil prices climbed higher on Monday on possible supply disruptions due to rising tensions on the geopolitical front although the upside was marginal as investors look to Thursday’s OPEC meeting. West Texas Intermediate Crude oil futures for January ended up by $0.10 or 0.15 percent at $68.10 a barrel.

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